3 The benefits of structuring the environmental management group in this way are i The operating managers have incentives to carefully weigh and conduct cost– benefit analyses before requesting the environmental group’s services. ii The operating managers have an incentive to follow the work and the progress made by the environmental team. iii The environmental group has incentives to fulfil the contract, to do a good job in terms of cost, time and quality and to satisfy the operating divisions in order to continue to get business. The problems in structuring the environmental group in this way are
